The following are selected financial information on Firm A and Firm B. You are asked to complete the table by methodically calculating the missing information (question numerated in lines 11 to 20). Assume that Cost of Goods Sold (COGS) is 65% of Sales and that the company uses a marginal tax rate of 28%

mult-level question: 11-21

A 20,000 $ $ B 20,000 11 Revenue COGS Gross Profit Operating Expenses EBIT Interest Expense EBT Income Tax @ 28% Net Income 7,000 12.000) 5,000 7,000 2.00g 5,000 12 13 14 3,600 3,503 15 Earnings per share 16 Dividend 17 Expected Return on Equity 18 Estimated Share Price 19 20 Market value of Equity Market Value of Debt Enterprise Value 35,707 22,683 Outstanding Debt Shares Outstanding Cost of Debt Beta Expected return on Market Dividend pay-out ratio Dividend growth Risk free Common Equity (Balance Sheet) S Company's debt trading e n/a 2,000 6X 1.50 7.0% 65% 3.0% 1.5% 1,200 1,500 500 9 2.30 7.ON 65% 3.0% 1.5 1,200 110 S Which Firm' shareholders are wealthier? Explain why